Number of pensioners paying higher rate of income tax doubles as warning issued
More pensioners are being hit with income tax(Image: Getty)
TL;DR
- Over a million pensioners are now paying income tax at 40% or more, more than double the number from five years ago.
- The number of pensioners paying the additional 45% tax rate has also significantly increased.
- The personal income tax allowance has been frozen until March 2031, contributing to more pensioners exceeding it.
- The state pension alone is expected to exceed the personal allowance next April.
- While the government assures sole state pensioners won't pay tax on income above the allowance, experts advise larger retirement pots are needed to cover future tax bills.